Safe and Sound

SHERWIN WILLIAMS EMP.

SHERWIN WILLIAMS EMP. is an NCUA-insured credit union founded in 1936 and currently headquartered in South Holland, IL. As of December 31, 2017, the credit union had assets of $30.3 million.

With 10 full-time employees, the credit union holds loans and leases worth $11.5 million. SHERWIN WILLIAMS EMP.'s 5,152 members currently have $25.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SHERWIN WILLIAMS EMP. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is essential. It works as a buffer against losses and affords protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, SHERWIN WILLIAMS EMP. racked up 20 out of a possible 30 points, exceeding the national average of 15.65.

SHERWIN WILLIAMS EMP.'s capitalization ratio of 20.00 percent in our test was higher than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these kinds of assets may eventually require a credit union to use capital to cover losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

SHERWIN WILLIAMS EMP. scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

SHERWIN WILLIAMS EMP. received below-average marks on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than its peers in this area.

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.

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